Answer:
When Janette turns 15 years old, the balance will be $3500. The correct answer is the D option.
Step-by-step explanation:
It is about a simple interest problem.
The first thing to know is that balance is the total amount of money available in a bank account, so you must find the money Janette will have when she turns 15 years old.
If her grandmother deposited $2500 when Janette was 5 years old, the money will have been for 10 years in the bank by the time she is 15 years old.
The simple interest formula is: \(x_{final}=x_{initial}+x_{initial}\cdot r \cdot t\), where \(x_{final}\) is the final amount of money (initial amount plus interests), \(x_{initial}\) is the initial amount of money, \(r\) is the interest rate and \(t\) is the time period.
The idea is to find \(x_{final}\), so you must replace the other variables with the information that the problem gives. Keep in mind that 4% is 0.04.
\(x_{final}=x_{initial}+x_{initial}\cdot r \cdot t\)
\(x_{final}=2500+2500\cdot (0.04) \cdot (10)\)
\(x_{final}=3500\)
Thus, when Janette turns 15 years old, the balance will be $3500. The correct answer is the D option.
